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Nebius shares surged more than 60% in after-hours trading on Monday following news of a landmark artificial intelligence infrastructure agreement with Microsoft. The multibillion-dollar deal, valued at up to $19.4 billion over the next five years, marks Nebius’ first long-term contract with a global tech powerhouse—and the company says this could be the first of many.

Details of the Microsoft Partnership

According to Nebius, the agreement will supply Microsoft with advanced GPU-based computing power to support its growing AI workloads. The infrastructure will be delivered from Nebius’ U.S. data center in New Jersey, with services rolling out in multiple phases through 2025.

In its SEC filing, Nebius stated that the contract guarantees $17.4 billion in revenue through 2031, with Microsoft holding an option to purchase up to an additional $2 billion in capacity.

Microsoft has been aggressively expanding its AI computing footprint to meet surging demand, particularly from its cloud customers like OpenAI. As adoption of ChatGPT and other generative AI applications accelerates, the company has turned to external providers—including CoreWeave and now Nebius—to secure the infrastructure needed to handle workloads at scale.

Market Reactions

The announcement triggered a dramatic rally in Nebius’ stock, which had already more than doubled in value this year. Before the deal, the Amsterdam-based company closed Monday’s session with a market capitalization just above $15 billion. Following the news, the stock jumped more than 60% in extended trading, pushing its valuation substantially higher.

Meanwhile, CoreWeave’s shares rose 5%, reflecting investor confidence in AI infrastructure firms as demand grows. Microsoft’s stock remained relatively flat, signaling that while the deal is strategically important, it represents a small fraction of its overall operations.

Nebius’ Expansion and Rebrand

Founded in 1989, Nebius has undergone a major transformation in recent years. Formerly known as Yandex NV, the company rebranded after Russian investors acquired Yandex’s Russian-language search engine and related assets in 2023. Since then, Nebius has repositioned itself as a global AI infrastructure leader.

In late 2024, Nebius expanded into the U.S. with new offices in San Francisco, Dallas, and New York. In a company blog post, leadership emphasized its mission: “Growing our presence in the U.S. means we can be closer to our customers and support innovative American AI businesses on their journey into the future.”

The Bigger Picture for AI Infrastructure

The deal underscores a broader industry trend: tech giants are racing to secure access to specialized computing resources needed to power the AI boom. With OpenAI also inking multibillion-dollar partnerships—including with Google and CoreWeave—Microsoft’s deal with Nebius highlights the intense competition to secure GPU capacity.

Nebius hinted that more long-term partnerships are in the pipeline, and the company is now exploring financing options to accelerate growth faster than initially planned. If demand continues at its current pace, Nebius could emerge as one of the most critical players in the global AI infrastructure race.